Six Israeli police officers, including Israel Police and Border Police, were injured in a car-ramming attack near the Sheikh Jarrah district of East Jerusalem on Sunday.
Police spokesman Micky Rosenfeld said the driver of the vehicle was quickly shot and killed by an officer after the attack.
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Several ambulances attended the scene of the apparent attack, which seemed aimed at Israeli police.
At least two people were seen on stretchers being taken into ambulances.
Clashes erupted in the area between Palestinians and Israeli forces last month after Israel planned to evict Palestinian families living in Sheikh Jarrah to make way for Israeli settlers.
Those protests spread to Al-Aqsa mosque and sparked the exchange of fire between Israel and Hamas in Gaza.